I do not know for sure since I have not tried it. However, Lindows is a
linux based operating system which is quite different from windows. Thus, I
would repartition and reformat before installing win98 (if you intend to use
the same partition presently used for lindows).

PS: i Have used linux in which case repartitioning and formatting is a very
good idea if installing windows in trying to install windows in the same
space.